A Government backbencher told the House of Assembly that he planned to sue a newspaper for libel over a story which claimed he was being investigated by police fraud squad officers.

Nelson Bascome said the article on the front page of yesterday's Mid-Ocean news ? sister paper ? was defamatory.

He described the story as "character assassination editorialising" and said the weekly paper had not contacted him for comment or "sought the truth" but had used the piece as "an excuse to scandalise my name".

"I have been informed by my lawyers that I should consider redress by way of libel suit to hold the Mid-Ocean News accountable," he said.

Mr. Bascome did not make clear whether there was a Police investigation but told the House: "The matter to which they refer is my private business which I own and which is funded by myself and secured by the deeds to my property."

The Mid-Ocean story said details of the alleged Police probe were sketchy but claimed that a file containing the findings of an investigation had been compiled after months of detective work.

The article stated that it was not clear whether the file would be passed to the Department of Public Prosecutions (DPP) or whether prosecutors would take the case to court.

Mr. Bascome said the story intimated that the file may be sent to the DPP.

Bermuda Police Service spokesman Dwayne Caines would not comment on the story yesterday but repeated a statement given to the Mid-Ocean: "We are following due process and at the appropriate time all the details will be revealed."

Mid-Ocean News editor Tim Hodgson said the newspaper stood by its story. The DPP could not be contacted for comment.